Betfair backers eye 37-fold return

By

Guy Paisner

February 28, 2006 5:00 pm GMT

Softbank's acquisition of up to 23% of Betfair, the internet betting exchange, values the 35% stake held by a group of venture capital funds at £525m (€772m), more than 37 times the value of their initial investment.

The venture firms include Benchmark Capital, which has a 10% stake in Betfair, as well as UBS Capital, Chase Capital and Index Ventures, which was involved in Europe's most lucrative venture-backed exit last year with the $4.1bn sale of Skype to eBay.